Boston Scientific (NYSE: BSX) sales edge up 1.5% while GAAP profit falls

What happened

Boston Scientific Corporation (NYSE: BSX) grew third-quarter net sales 1.5% to $5.14 billion, but GAAP profit fell and adjusted EPS slipped.

Sales rose $73 million from $5.07 billion a year earlier. GAAP net income attributable to common stockholders fell $173 million to $582 million, or $0.40 per share against $0.51. Adjusted EPS was $0.73 against $0.75. It leaves out items such as amortization, impairment, restructuring and litigation charges.

Chairman and CEO Mike Mahoney called it a challenging year and praised the company's teams for their response to the cybersecurity incident. The earnings release says he remains confident in the long-term strategy. It also names the incident, first reported on Aug. 26, 2026, as a risk to operations and results.

Key numbers

Metric	Latest	Change	Source
Q3 net sales	$5.14 billion	from $5.07 billion, +1.5%	SEC 8-K, Exhibit 99.1
GAAP net income attributable to common stockholders	$582 million	from $755 million, -22.9%	Calculated from SEC 8-K
GAAP EPS	$0.40	from $0.51, -$0.11	Calculated from SEC 8-K
Adjusted EPS	$0.73	from $0.75, -$0.02	Calculated from SEC 8-K
GAAP gross margin	66.7%	from 69.9%, -3.2 percentage points	Calculated from SEC 8-K
Full-year 2026 adjusted EPS guidance	$3.16 to $3.18		SEC 8-K, Exhibit 99.1

Read more: Boston Scientific (BSX) company research

Where profit slipped

The squeeze showed up in gross profit. It fell to $3.43 billion from $3.54 billion even as sales rose, because cost of products sold climbed to $1.71 billion from $1.52 billion. By OptimistFi's calculation, gross margin was 66.7% against 69.9% a year earlier.

Operating income dropped to $828 million from $1.05 billion. The quarter carried litigation-related charges of $81 million, restructuring charges of $63 million and intangible asset impairment charges of $39 million. A $32 million benefit from contingent consideration offset part of that. A year earlier restructuring was a net credit of $8 million and impairment charges were zero.

Diluted shares fell to 1,452.0 million from 1,495.5 million. So per-share results fell by less than net income did.

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Where sales grew and fell

Growth was thin and uneven. Cardiovascular sales rose 1.9% to $3.41 billion and MedSurg rose 0.6% to $1.73 billion. Inside MedSurg, Neuromodulation climbed 13.1% to $331 million while Urology fell 3.2% and Endoscopy fell 0.8%.

U.S. sales rose 0.5% to $3.31 billion. Europe, the Middle East and Africa grew 4.4% as reported and 6.1% operationally, which leaves out currency effects. Latin America and Canada rose 16.0% to $203 million. Asia-Pacific fell 0.6% as reported.

What the guidance implies

Management now expects full-year net sales growth of 4.25% reported and 3.75% organic, with adjusted EPS of $3.16 to $3.18. For the fourth quarter it expects net sales to fall 1.0% to 3.0% on a reported and organic basis, with adjusted EPS of $0.77 to $0.79.

Nine-month results show how far growth has slowed. Net sales were $15.78 billion against $14.79 billion a year earlier, up 6.7% by OptimistFi's calculation. Nine-month adjusted EPS was $2.39 against $2.26. Adding the fourth-quarter EPS range reaches the full-year range.

Why it matters

OptimistFi has argued that Boston Scientific turns steady demand for less-invasive devices, product innovation and scale into growing sales, wider margins and rising free cash flow. The quarter supports the first link, since both segments grew. It cuts against the margin link, since gross margin narrowed. The read is mixed.

The company's own words temper it. Boston Scientific calls 2026 a challenging year, lists disruption from the cybersecurity incident as a risk to results, and guides to a fourth-quarter sales decline. The quarter shows no clean acceleration.

The release also lists pipeline steps. Enrollment began in the Elite AF trial of the next-generation WATCHMAN Elite device. The FDA granted 510(k) clearance to the Navigator Flex Ureteral Access Sheath Set, the LithoVue Elite ureteroscope and an expanded size of the SEISMIQ peripheral catheter.

The American Medical Association assigned Category I CPT codes for renal denervation and implantable tibial nerve stimulation devices, effective January 2028. Boston Scientific also entered a collaboration with Heartflow, Inc. (Nasdaq: HTFL) on CT-guided planning for coronary procedures.

What's next

The next test is Boston Scientific's fourth-quarter and full-year 2026 report. Results inside the guided fourth-quarter ranges would leave the full-year outlook intact. A sales decline deeper than guided would weaken the case.

The new CPT codes take effect in January 2028.

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